Bitcoin News Today: Bitcoin's Golden Goose Stumbles: Metaplanet's Flywheel Falters

Metaplanet, a Tokyo-listed firm known for its aggressive Bitcoin accumulation strategy, is encountering significant financial challenges as its stock price has dropped 54% since mid-June. This decline threatens its capital-raising model, which relies on a “flywheel” mechanism involving share-based warrants issued to Evo Fund, a key investor. The falling stock price has made it less attractive for Evo to exercise these warrants, thereby slowing Metaplanet’s ability to raise funds and acquire more Bitcoin [1].

The company currently holds 18,991 BTC, ranking it as the seventh-largest public Bitcoin holder globally, according to BitcoinTreasuries.NET. Metaplanet’s ambitious goal is to increase its Bitcoin holdings to 100,000 BTC by the end of 2026 and 210,000 BTC by 2027. This strategy hinges on maintaining a significant premium between its market capitalization and the value of its Bitcoin holdings. However, this premium has fallen from over 8x in June to just 2x, raising concerns about the sustainability of its funding approach [1].

To address the liquidity issue, Metaplanet has turned to alternative fundraising methods. On Wednesday, it announced a public share offering in overseas markets aimed at raising approximately 130.3 billion yen ($880 million). Additionally, the firm is seeking shareholder approval to issue up to 555 million preferred shares, potentially raising as much as 555 billion yen ($3.7 billion). These preferred shares, described by CEO Simon Gerovich as a “defensive mechanism,” are intended to allow capital infusion without diluting common shareholders and come with annual dividends of up to 6%. The issuance is expected to appeal to yield-starved Japanese investors [1].

Analysts have expressed caution, with Eric Benoit of Natixis highlighting that the Bitcoin premium is critical to the success of Metaplanet’s strategy. The firm has suspended warrant exercises from Sept. 3 to 30 to facilitate the preferred stock offering. It remains to be seen whether this shift will stabilize the company’s funding model. In the meantime, Metaplanet has been upgraded from a small-cap to a mid-cap stock in FTSE Russell’s September 2025 Semi-Annual Review, earning inclusion in the FTSE Japan Index following its strong Q2 performance [1].

The evolving strategy underscores the challenges Metaplanet faces in maintaining its growth trajectory amid a volatile market. As the company navigates these hurdles, the effectiveness of its new fundraising initiatives will be a key factor in determining its ability to achieve its long-term Bitcoin accumulation goals. The preferred share offering, in particular, represents a departure from traditional methods and may serve as a test of investor confidence in the firm’s strategy [1].